Part II (Concentration measures and Cournot Duopoly)

1)In an industry there are 11 firms with market shares: 10%, 20%, 15%, 5%, 30%, 10%, and five additional firms with 2% each.

a)Graphically describe this market's concentration curve.

b)What is the I4 index of market concentration for this market? What is the I8 index of market concentration for this market?

c)What is the HHI (Herfindhal- Hirshman index) of market concentration for this market?

d)Provide an example of an industry that also has 11 firms but is more concentrated than this one according to both the I4 and the HHI index.

e)Provide an example of an industry that also has 11 firms, that is more concentrated than this one according to the I4 index but less concentrated according to the HHI index.